On Monday, Margaret Hodge, minister for children, announced a consultation that could see families earning around 43,000 eligible to claim tax credits towards their childcare costs from next April. These tax credits would cover the employment of nannies, childminding for children aged over seven, childcare for children aged over seven in breakfast clubs or holiday clubs, and clubs and activities for children under eight that last less than two hours a day.
However, the tax credits will not be extended to cover childcare done by relatives such as grandparents. The Government has also proposed that the new categories of carers would be subject to a 'light-touch' approval scheme that would not be run by Ofsted in England, but by a different organisation.
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